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The lack of volatility combined with the continual grind tighter of spreads of investment grade corporate bonds meant investors in the asset class enjoyed good returns in 2017. Similar conditions look set to prevail at the start of 2018, but investors need to maintain vigilance.

China Merchants Port Holdings is returning to the Panda bond market for a Rmb500m ($76.8m) deal to fund its acquisition of a port in Sri Lanka — a flagship project under China's Belt and Road Initiative (BRI).

Syndicate managers in the corporate bond market are back at their desks and ready to get the year off to a fast start, with few thinking the start to 2018 will be any different to January of last year.

Mizuho Bank is preparing to sell the first ever Panda bond by a Japanese issuer, after picking three local banks to manage the deal.

Many European corporate bond syndicate desks and investors thought they were done for new issues in 2017, but a surprise mandate on Tuesday, with an accelerated settlement, was still very well supported.

On Tuesday, ratings agency Moody’s announced it was changing its outlook to negative for four UK based water utilities and affirmed its existing negative outlook on two others.

Vonovia, the German housing company, is likely to issue debt next year, to finance its €5.2bn cash offer for Austrian peer Buwog, announced on Monday morning.

Offshore renminbi liquidity could get a shot in the arm as Shanghai Clearing House (SHCH) joins hands with R5, a London-based FX platform, to create a link between the FX markets in the UK and China. The move is also set to widen Chinese banks’ access to global currencies.

Ratings agency Moody’s has said that it expects a high level of refinancing of hybrids by utilities in 2018, following €4.2bn of hybrids issued by the sector in 2017.

As bankers look under the Christmas trees of the European IG corporate bond markets for 2018, the shapes and sizes are all very predictable. A year dominated by a lack of surprises, particularly compared with previous years, is coming to a close in similar fashion.

Hong Kong-listed China Mengniu Dairy has won regulatory approval to tap the Panda bond market for the first time, and is seeking as much as Rmb15bn ($226.7m) from short and medium term notes.

Europe's largest property company Unibail-Rodamco announced an agreed offer of $15.7bn for the equity of Westfield Corp, the Australian shopping centre operator, on Tuesday. The deal, which valued the enterprise at $24.7bn, was the second retail property consolidation in a week as the sector comes under the M&A spotlight, writes Nigel Owen.